New Zealand Automotive Industry By: Robert Geber, Theresa Console, Ulisses Flores, Paige Slattery

Cultural Environment Located in the Southwestern Pacific Ocean, consists of 2 main Islands. North And South Islands. (Near Australia) Nation’s capital is Wellington, located on the North Island. Originally settled by polynesians around year 1250-1300s. Developed distinct Maori culture. After being colonized by Britain in 1841, New Zealand gained dominion over themselves in 1907. Today: Ranks highly in international comparisons of Health, Education, Economic Freedom, and Quality of Life.

Culture Population: 4.79 Million people (2017) 3.86 Million people (80 % of the population) are within the age range of driving (16- 65+ years old). Language: English is spoken by 96.14 percent of the population. Sounds very similar to an Australian accent. Remaining 3.73 speak indigenous language of Maori Religion: 48% Christian, 42% stated they had no religion, and remaining 10% consists of culmination of remaining religions.

Hofstede's dimensions Blue: New Zealand Purple: United States

Automotive Culture In New Zealand - Founded from a traditionally “do-it-yourself” mentality. - Relaxed import laws in New Zealand have brought a large influx of new and used cars from the Japanese Domestic Market (JDM) and European Market. - Import licenses are not required to import goods into New Zealand and import restrictions are not imposed for purely trade-related reasons. - Large community of people who buy used old vehicles and tune them up.

Relaxed Import Laws New Zealand imports about 1.6 million used vehicles and about 2 million new vehicles a year. About 46% of cars imported are used. As a result of the relaxed laws in New Zealand, cars routinely sell for between 10 per cent and 30 per cent less

Legal Environment System of Common Law and Statute Law based on English System House of Lords and (English) Court of Appeal decisions are still highly persuasive, and English decisions are still often cited in New Zealand courts. World Bank's “Doing Business” 2016 publications placed New Zealand in top 2 for overall ease of doing business. - 1st for starting a business, 1st for registering property, 1st for getting credit, 2nd for protecting minority investors, 3rd for dealing with construction permits

Focused Legal Environment In order for an overseas company to carry business in New Zealand, it must apply to be registered under the Companies Act of 1993 as an “overseas company”. Overseas Investment Act of 2005 Any acquisition of sensitive land, or significant business assets require consent from Overseas Investment Office. Main structures to establish a business in New Zealand are: establishing a branch office for an overseas company setting up a (or purchasing an existing) New Zealand registered company other options include trusts and partnerships (including limited partnerships) Limited Partnerships Act of 2008- (Incentive for international investment)- Investors benefit from being taxed as a partnership while still providing the protection of limited liability and maintaining a separate legal entity from the owner of the company.

Social Environment

Social Environment North Island Auckland 33% Wellington 11% Waikato 9% South Island Canterbury 12% Otago 4% Southland 2% European Descent Maori Asian Descent Pacific Descent

Also known as “Kiwis” “Friendly but reserved” “Open but respectful” Incorporates a lot of traditions from the Maori culture Grace Greetings Mannerisms

Wealth Distribution European 91% Maori 4% Asian 3% Pacific 1% Age group 15-24 1.5% 25-34 7% 35-44 20% 45-54 26% 55-64 22% 65+ 21%

Economic Environment Least regulated 3rd freest 2nd one of the world’s free-market based economies world’s 2nd easiest country to do business in Heritage Foundation rated NZ the 3rd freest economy in its 2015 Index of Economic Freedom

Economic Environment

Economic Environment

Monetary Environment 1 New Zealand Dollar $0.68 cents

Trade Environment

Trade Agreements Around 95% of goods come into New Zealand tariff free. New Zealand is for less government regulation and restriction Part of many trade organizations/agreements World Trade Organization (WTO) Asia Pacific Economic Cooperation (APEC) Da Nang Declaration 21 countries Closer Economic Relations (CER) Affected around 130 billion dollars worth of trade in 2013 Trans Pacific Partnership (TTP) Affect 40% of the world’s GDP 12 countries involved

Imports at 65.1 billion Exports at 67.5 billion Trade surplus of 2.3 billion Vehicles, parts, and accessories from Japan were the largest imported expenses. 1.9 Billion

Top 10 Purchased vehicles of 2016 for New Zealand Ford Ranger Toyota Hilux Toyota Corolla Holden Colorado Toyota Rav4 Mitsubishi Triton Kia Sportage Nissan Navara Mazda CX-5 Suzuki Swift

Political Environment Role of head of state is held by Queen Elizabeth II, as Queen of New Zealand Prime Minister, since October 26th of this year, is Jacinda Ardern Democratic engagement is strong. Typically between 75-80% of New Zealanders turn out to vote in general elections. Three branches of government The Legislature (parliament) The Executive The Judiciary

Size & Growth Sales expected to reach 150k for 2017 4th largest in the world 770 motor vehicles per 1000 people 14,594 new car sales in Nov. alone 28% corporate tax rate GDP per capita 38,823 US$ (2016)

Trends No new car manufacturing or assembly in New Zealand for over a decade Electric and hybrid cars on the rise A rapidly growing population driving a surge of new car sales An increasing shift towards car sharing New car imports topped half a billion NZD

Competitive Environment Small, highly competitive market Most popular manufacturers Toyota Ford Holden Mazda Mitsubishi Hyundai Nissan

Competitive Advantage Ford Consumer experience initiatives Ext. Roadside Assistance Service Loan Cars Ford Mapcare Toyota Cars are built to exacting standards Affordable used, not new electric cars Best selling commercial vehicle Hilux

Analysis Should a U.S. company get into the New Zealand Automotive Industry? Yes. Important to be a dominant player in the Asian Pacific Market. Being In New Zealand could provide a major advantage by having a production plant there. New Zealand business laws and infrastructure make it easy to get started, but remaining competitive will be highest priority.

Works Cited https://www.business.govt.nz/getting-started/choosing-the-right-business-structure/business-structure-overview/ http://www.doingbusiness.org/rankings https://www.austrade.gov.au/Australian/Export/Export-markets/Countries/New-Zealand/Doing-business/Tariffs-and-regulations https://www.offshore-protection.com/new-zealand-limited-liability-partnership-company-formation-nz-lp http://www.anthonyharper.co.nz/assets/PDF/New-Zealand-Business-Law-A-Guide-for-Trading-and-Investing.pdf https://www.nzta.govt.nz/vehicles/vehicle-types/vehicle-classes-and-standards/environmental-standards/ http://www.nyulawglobal.org/globalex/New_Zealand.html#_Business_and_Commercial_Law https://www.carthrottle.com/post/w8gkrqz/

https://www.just-auto.com/databank/automotive-oem-analysis.aspx https://www.mia.org.nz/Codes-of-Practice https://webtoolkit.govt.nz/guidance/legal-and-policy/accessibility-and-the-nz-legal-environment/ http://www.theaustralian.com.au/national-affairs/new-zealand-says-private-import-of-cars-no-issue/news-story/20ffa7a94076a0d63a13567f638dbae8 https://www.boppoly.ac.nz/go/international/new-zealand-customs-culture https://search-proquest-com.ezproxy.library.unlv.edu/docview/1438854926?pq-origsite=summon http://www.treasury.govt.nz/economy/overview/2016/nzefo-16.pdf https://www.newzealandnow.govt.nz/investing-in-nz/economic-overview#section--8 https://www.transparency.org/news/feature/corruption_perceptions_index_2016

https://www.govt.nz/browse/engaging-with-government/government-in-new-zealand https://www.justice.govt.nz/courts/going-to-court/without-a-lawyer/representing-yourself-civil-high-court/new-zealands-constitutional/#Branches-government https://tradingeconomics.com/new-zealand/unemployment-rate https://tradingeconomics.com/new-zealand/gdp-per-capita http://www.xe.com/currency/nzd-new-zealand-dollar https://teara.govt.nz/en/self-government-and-independence http://www.transport.govt.nz/assets/Uploads/Research/Documents/Fleet-reports/The-NZ-Vehicle-Fleet-2016-web.pdf